1.) Walter Inc. had net income of $350,000, debt-equity ratio of 0.5, book value of assets of $5 million, and 100,000 common shares outstanding. The company just paid a dividend per share of $2. What is Walter's estimated growth rate?

2.) A firm is anticipated to generate an EBIT of $2 million, with depreciation of $200,000, change in NWC of $120,000, and capital spending of $350,000 per year. The firm's marginal tax rate is 35%. What is the firm's annual adjusted cash flow from assets without debt financing?

3.) The required return on a project should depend on

Select one:

a.the riskiness of the project's cash flows.

b.the firm's WACC.

c.the firm's systematic risk.

d.the firm's operating leverage.

e.the debt-equity mix in the project's funding.

4.) X-Tra Ltd. Has a firm-wide WACC of 10%. However, it uses a project's unique risk and WACC in its capital budgeting decisions. This decision making approach is called

Select one:

a.the net present value approach.

b.the pure play approach.

c.the subjective approach.

d.the systematic risk approach.

e.the discounted cash flow approach.